Quotes of Ubisoft Entertainment, the developer behind Assassin’s Creed, Avatar: Frontiers of Pandora, and Star Wars Outlaws, jumped more than 11% today, November 21, the first day after trading resumed. A week earlier, the company had itself requested a suspension, following the identification of reporting issues that led to a breach of its credit agreement and delayed the publication of financial results.
Details
Ubisoft shares rose more than 11% to EUR7.54 per share in Paris trading today, with Euronext restarting trading in the company’s shares following a one-week halt. Ubisoft’s market capitalization is estimated at about EUR1 billion.
Trading was suspended on November 13. Ubisoft had been scheduled to release results for the first half of the 2025-26 fiscal year (ended September 30), but at the last moment postponed the release and requested that Euronext halt trading while it finalized the documentation, without providing any explanation.
Ubisoft released its results today and simultaneously asked the exchange to resume trading in order to prevent speculation.
Reason for results postponement
Ubisoft was forced to revise its financial statements after auditors determined that some revenue had been recognized improperly, while another portion should not have been recognized in the first half of the fiscal year, the company said today.
As a result, Ubisoft breached the terms of its loan agreement. The company stated that the issue would be resolved through early repayment of the loans once its transaction with Chinese tech giant Tencent Holdings closes “in the coming days.”
In March, Ubisoft announced the creation of a new division – a so-called "creative house" – called Vantage Studios, with Tencent set to acquire a minority stake for EUR1.16 billion. The transaction valued the company at a preinvestment enterprise value of approximately EUR4 billion, the company said at the time.
Today, Ubisoft said that Tencent’s investment will significantly reduce its debt load. As of September 30, net debt stood at EUR1.42 billion, with IFRS 15 sales of EUR657.8 million.
Tencent’s investment will also support Ubisoft’s ongoing transformation, the company said. In January, Ubisoft plans to unveil a new operating model built around creative houses, aimed at improving focus, efficiency, autonomy, and accountability across development teams.
Ubisoft has struggled in recent years, Bloomberg notes: well-known releases such as Avatar: Frontiers of Pandora, and Star Wars Outlaws, have underperformed in an increasingly competitive consumer market. Before trading was suspended, the company’s shares had fallen 48% since the beginning of the year.
The AI translation of this story was reviewed by a human editor.
